On this page of StockholderLetter.com we present the 4/28/2023 shareholder letter from Cannae Holdings, Inc. — ticker symbol CNNE. Reading current and past CNNE letters to shareholders can bring important insights into the investment thesis.
ANNUAL REPORT 2022
CANNAE HOLDINGS, INC. About Cannae Holdings, Inc. We primarily acquire interests in operating companies and are engaged in managing and operating a core group of those companies. We believe that our long-term ownership and active involvement in the management and operations of companies helps maximize the value of those businesses for our shareholders. Recurring Investment Themes: Large Total Addressable Market Strong market position in attractive and growing markets Strong Intellectual Property Competitive Position Transformation opportunities Opportunities to create additional value through strategic initiatives Industry Utilities Technology-enabled platforms that are deeply embedded into client systems and provide mission-critical solutions Established, high cash flow yield companies Focus on profitable businesses
2022 ANNUAL REPORT To Our Valued Shareholders, This year the S&P experienced the biggest oneyear decline since 2008, as markets adjusted to multiple macro-economic pressures including rising interest rates, stubbornly high inflation, a war in Ukraine affecting global energy prices and geopolitical risk, limited capital markets activity, and election year influences. While our portfolio companies are successfully managing many of these uncertainties, they were not immune to pressures from the broader market sell-off nor some operational impact. As a result, in 2022 we invested significant time managing our investments, our capital position, and buying back Cannae shares at what we perceive were attractive prices, as well as selectively pursing new investments. We ended the year feeling optimistic about our portfolio companies and their long-term prospects. For the full year 2022, we repurchased 10.8 million Cannae shares at a total cost of $225 million, representing 12% of Cannae shares outstanding as of December 31, 2021. Since May 2021, we have bought back 15.6 million shares, or 17% of our shares outstanding at the time, returning nearly $400 million to our shareholders. We had total cash monetizations in 2022 of over $950 million. This included 75% of our original investment in AmeriLife, wherein Cannae received cash proceeds of $243 million, a 2.7x return on our 2020 investment. Early in the year we sold our holdings in Optimal Blue, receiving $145 million in cash and $433 million of Dun & Bradstreet stock, a 2x return. We also sold 4 million shares of Ceridian for total proceeds of $286 million, or a 12x return. Additionally, we elected to realize tax losses on several holdings to reduce Cannae s tax liability. During the year, we sold 9.2 million shares of Dun & Bradstreet as well as 19.2 million Paysafe shares, and all of our Paysafe warrants and units. These and other actions reduced Cannae s 2022 cash taxes by $59 million and provided incremental liquidity. We believe these actions were in the best interest of our shareholders and took them even though it reduced management fees and created an investment loss for our manager that must be recovered through portfolio gains prior to earning carried interest. I see strong upside potential within our portfolio companies as we work with the management teams and help them execute on their initiatives. WILLIAM P. FOLEY, II Chairman 1
CANNAE HOLDINGS, INC. We are continually vetting new investments, particularly those with high barriers to entry, large addressable markets, scarcity Portfolio Updates value, and attractive business models and brands. We deployed nearly $400 million of capital in 2022, and are excited about these investments and the value they will deliver to our shareholders. Like you, we have been frustrated with our share price Dun & Bradstreet Holdings, Inc. performance as our stock has traded at a substantial discount (NYSE: DNB) to intrinsic and book value, despite our concerted efforts to close the gap through share buybacks, monetizations, and new investments. That said, we believe the market will come to realize the significant value created within Cannae. I am convinced these businesses will outperform over time and believe the discount will narrow. I appreciate your continued support of Cannae. Sincerely, Dun & Bradstreet, a leading global provider of business decisioning data and analytics, enables companies around the world to improve their business performance. Dun & Bradstreet s Data Cloud fuels solutions and delivers insights that empower customers to accelerate revenue, lower cost, mitigate risk, and transform their businesses. Since our initial investment in 2019, DNB has grown Adjusted revenues by 30% and adjusted EBITDA by over 50%, and Adjusted EBITDA margins have expanded by nearly 600 basis points, while cutting their net leverage ratio in half all while navigating abnormal and volatile economic environments. Notably, DNB also commenced paying a dividend in the third quarter of 2022. William P. Foley, II Chairman of the Board DNB continued to execute on its transformation strategy in 2022. Led by its best-in-class, proprietary data set, DNB made significant progress simplifying and upgrading its platforms and utilizing the resulting insights to build new, innovative solutions for its clients. These improvements resulted in numerous key wins and expanded relationships with existing customers, driving solid organic revenue growth, despite headwinds from foreign exchange. While DNB continues its transformation, we are thrilled with the progress made to date. We look forward to guiding DNB into its next chapter with opportunities to continue to enhance its data set through cloud infrastructure migration, integration of artificial intelligence and machine learning, modernizing its supply chain and developing new innovative solutions in growth areas such as supply chain, ESG, and other new verticals. Cannae acquired a net 20.2 million shares of DNB in February 2022, in connection with our exit from Optimal Blue, and sold 9.2 million shares in July 2022 for tax planning, resulting in a net increase of 11 million DNB shares during the year. Cannae now holds 79.0 million shares of D&B common stock, representing approximately 18% of DNB s outstanding shares. 2
2022 ANNUAL REPORT Ceridian HCM Holdings, Inc. Alight, Inc. (NYSE: ALIT) (NYSE: CDAY) Ceridian is a global human capital management software Alight is a leading cloud-based human capital technology company. Dayforce, its flagship cloud HCM platform, and services provider that powers confident health, wealth, provides human resources, payroll, benefits, workforce and well-being decisions. The Alight Worklife platform management, and talent management functionality. The combines data and analytics with a simple, seamless user Dayforce platform is used to optimize management of the experience by combining content, artificial intelligence, entire employee lifecycle, including attracting, engaging, and data analytics to enable Alight s business process as a paying, deploying, and developing people. service (BPaaS) model. David Ossip and the Ceridian management team continued Alight is an industry leader, providing mission-critical solutions their expansion and reach of Dayforce in 2022, the 15th year of across health, wealth, and global payroll that connects the Cannae s investment in the company. Dayforce reached nearly dots between people, work, and life to help employees stay six million active employees by the end of 2022, an increase healthy, gain financial security, and improve their overall well- of over 17% from the prior year-end. The product expanded being. Alight s BPaaS solutions provide the systems, tools in terms of geography and platform offerings during the year, and technologies employers need to maximize the value of including aspects of the Dayforce Wallet in the U.S. and United their benefits, improve participant outcomes, drive increased Kingdom in the fourth quarter of 2022 alone. These actions productivity, and help employers develop high-performance grew the number of domestic and international companies cultures. Alight s technology platform serves more than 36 signed up for the product to 1,450 customers. The company was million employees and their family members, and its solutions also authorized to open the Ceridian National Trust Bank in the are in place at 70% of the Fortune 100 companies. U.S. to act as a trustee for Ceridian s U.S. payroll trust. In 2022, Alight proved its resilience across market conditions, The result was a fantastic 2022 for the company a 24% delivering total revenue growth and Adjusted EBITDA ahead increase in total revenue (constant currency), a 33% increase of or in line with guidance, generating a 45% increase over the in cloud annualized recurring revenue, cloud recurring gross prior year in BPaaS revenue and in BPaaS full year booking on a margin of 72%, and a 54% increase in Adjusted EBITDA. total contract value basis. Growth in many of these metrics were substantially ahead of the company s targets at the beginning of the year. The value of Alight BPaaS products to both employer and employee is evident as the company has a 98% average revenue retention. Looking forward, 83% of Alight s forecasted revenue for 2023 is already under contract. Since going public in 2021, Alight has won over 700 new clients and has nearly achieved the three-year goal it set for total contract value by the end of its second year as a public company. While we are quite proud of the accomplishments and value creation at Ceridian, the incremental value we add to their operations lessens with the maturity of this company and management team, and accordingly, we have reduced Cannae s stake each year since their April 2018 IPO, when we owned 37 million shares. During 2022, Cannae sold 4 million shares of CDAY for $286 million. From the IPO date through March 2023, Cannae has sold approximately 32.1 million shares of CDAY, returning gross proceeds to our shareholders of over $2 billion. As companies continue to look for ways to engage with increasingly disconnected employees, we are optimistic on the prospects of Alight as management continues to build and expand its broad set of employer solutions. Cannae holds 52.5 million shares of Alight common stock, representing approximately 10% of their outstanding shares. 3
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CNNE 4/28/2023 Shareholder/Stockholder Letter Transcript:

ANNUAL
REPORT
2022

CANNAE HOLDINGS, INC.
About Cannae Holdings, Inc.
We primarily acquire interests in operating companies and
are engaged in managing and operating a core group of those
companies. We believe that our long-term ownership and active
involvement in the management and operations of companies helps
maximize the value of those businesses for our shareholders.
Recurring Investment Themes:
Large Total
Addressable Market
Strong market position in
attractive and growing markets
Strong
Intellectual Property
Competitive Position
Transformation opportunities
Opportunities to create additional value
through strategic initiatives
Industry Utilities
Technology-enabled platforms
that are deeply embedded into
client systems and provide
mission-critical solutions
Established, high cash flow
yield companies
Focus on profitable businesses

2022 ANNUAL REPORT
To Our Valued
Shareholders,
This year the S&P experienced the biggest oneyear decline since 2008, as markets adjusted to
multiple macro-economic pressures including
rising interest rates, stubbornly high inflation, a
war in Ukraine affecting global energy prices and
geopolitical risk, limited capital markets activity,
and election year influences. While our portfolio
companies are successfully managing many of
these uncertainties, they were not immune to
pressures from the broader market sell-off nor some
operational impact. As a result, in 2022 we invested
significant time managing our investments, our
capital position, and buying back Cannae shares
at what we perceive were attractive prices, as well
as selectively pursing new investments. We ended
the year feeling optimistic about our portfolio
companies and their long-term prospects.
For the full year 2022, we repurchased 10.8 million Cannae shares
at a total cost of $225 million, representing 12% of Cannae shares
outstanding as of December 31, 2021. Since May 2021, we have
bought back 15.6 million shares, or 17% of our shares outstanding
at the time, returning nearly $400 million to our shareholders.
We had total cash monetizations in 2022 of over $950 million.
This included 75% of our original investment in AmeriLife,
wherein Cannae received cash proceeds of $243 million, a 2.7x
return on our 2020 investment. Early in the year we sold our
holdings in Optimal Blue, receiving $145 million in cash and
$433 million of Dun & Bradstreet stock, a 2x return. We also
sold 4 million shares of Ceridian for total proceeds of $286
million, or a 12x return.
Additionally, we elected to realize tax losses on several holdings
to reduce Cannae   s tax liability. During the year, we sold 9.2
million shares of Dun & Bradstreet as well as 19.2 million
Paysafe shares, and all of our Paysafe warrants and units.
These and other actions reduced Cannae   s 2022 cash taxes by
$59 million and provided incremental liquidity. We believe these
actions were in the best interest of our shareholders and took
them even though it reduced management fees and created
an investment loss for our manager that must be recovered
through portfolio gains prior to earning carried interest.
I see strong upside potential within our portfolio companies as
we work with the management teams and help them execute
on their initiatives.
WILLIAM P. FOLEY, II
Chairman
1

CANNAE HOLDINGS, INC.
We are continually vetting new investments, particularly those
with high barriers to entry, large addressable markets, scarcity
Portfolio Updates
value, and attractive business models and brands. We deployed
nearly $400 million of capital in 2022, and are excited about these
investments and the value they will deliver to our shareholders.
Like you, we have been frustrated with our share price
Dun & Bradstreet Holdings, Inc.
performance as our stock has traded at a substantial discount
(NYSE: DNB)
to intrinsic and book value, despite our concerted efforts to
close the gap through share buybacks, monetizations, and
new investments. That said, we believe the market will come
to realize the significant value created within Cannae. I am
convinced these businesses will outperform over time and
believe the discount will narrow.
I appreciate your continued support of Cannae.
Sincerely,
Dun & Bradstreet, a leading global provider of business
decisioning data and analytics, enables companies around
the world to improve their business performance. Dun
& Bradstreet   s Data Cloud fuels solutions and delivers
insights that empower customers to accelerate revenue,
lower cost, mitigate risk, and transform their businesses.
Since our initial investment in 2019, DNB has grown Adjusted
revenues by 30% and adjusted EBITDA by over 50%, and
Adjusted EBITDA margins have expanded by nearly 600 basis
points, while cutting their net leverage ratio in half     all while
navigating abnormal and volatile economic environments.
Notably, DNB also commenced paying a dividend in the third
quarter of 2022.
William P. Foley, II
Chairman of the Board
DNB continued to execute on its transformation strategy in
2022. Led by its best-in-class, proprietary data set, DNB made
significant progress simplifying and upgrading its platforms and
utilizing the resulting insights to build new, innovative solutions
for its clients. These improvements resulted in numerous key
wins and expanded relationships with existing customers,
driving solid organic revenue growth, despite headwinds from
foreign exchange.
While DNB continues its transformation, we are thrilled with the
progress made to date. We look forward to guiding DNB into its
next chapter with opportunities to continue to enhance its data
set through cloud infrastructure migration, integration of artificial
intelligence and machine learning, modernizing its supply chain
and developing new innovative solutions in growth areas such
as supply chain, ESG, and other new verticals.
Cannae acquired a net 20.2 million shares of DNB in February
2022, in connection with our exit from Optimal Blue, and sold
9.2 million shares in July 2022 for tax planning, resulting in a net
increase of 11 million DNB shares during the year. Cannae now
holds 79.0 million shares of D&B common stock, representing
approximately 18% of DNB   s outstanding shares.
2

2022 ANNUAL REPORT
Ceridian HCM Holdings, Inc.
Alight, Inc.
(NYSE: ALIT)
(NYSE: CDAY)
Ceridian is a global human capital management software
Alight is a leading cloud-based human capital technology
company. Dayforce, its flagship cloud HCM platform,
and services provider that powers confident health, wealth,
provides human resources, payroll, benefits, workforce
and well-being decisions. The Alight Worklife   platform
management, and talent management functionality. The
combines data and analytics with a simple, seamless user
Dayforce platform is used to optimize management of the
experience by combining content, artificial intelligence,
entire employee lifecycle, including attracting, engaging,
and data analytics to enable Alight   s business process as a
paying, deploying, and developing people.
service (BPaaS) model.
David Ossip and the Ceridian management team continued
Alight is an industry leader, providing mission-critical solutions
their expansion and reach of Dayforce in 2022, the 15th year of
across health, wealth, and global payroll that connects the
Cannae   s investment in the company. Dayforce reached nearly
dots between people, work, and life to help employees stay
six million active employees by the end of 2022, an increase
healthy, gain financial security, and improve their overall well-
of over 17% from the prior year-end. The product expanded
being. Alight   s BPaaS solutions provide the systems, tools
in terms of geography and platform offerings during the year,
and technologies employers need to maximize the value of
including aspects of the Dayforce Wallet in the U.S. and United
their benefits, improve participant outcomes, drive increased
Kingdom in the fourth quarter of 2022 alone. These actions
productivity, and help employers develop high-performance
grew the number of domestic and international companies
cultures. Alight   s technology platform serves more than 36
signed up for the product to 1,450 customers. The company was
million employees and their family members, and its solutions
also authorized to open the Ceridian National Trust Bank in the
are in place at 70% of the Fortune 100 companies.
U.S. to act as a trustee for Ceridian   s U.S. payroll trust.
In 2022, Alight proved its resilience across market conditions,
The result was a fantastic 2022 for the company     a 24%
delivering total revenue growth and Adjusted EBITDA ahead
increase in total revenue (constant currency), a 33% increase
of or in line with guidance, generating a 45% increase over the
in cloud annualized recurring revenue, cloud recurring gross
prior year in BPaaS revenue and in BPaaS full year booking on a
margin of 72%, and a 54% increase in Adjusted EBITDA.
total contract value basis. Growth in many of these metrics were
substantially ahead of the company   s targets at the beginning of
the year. The value of Alight BPaaS products to both employer
and employee is evident as the company has a 98% average
revenue retention. Looking forward, 83% of Alight   s forecasted
revenue for 2023 is already under contract. Since going public
in 2021, Alight has won over 700 new clients and has nearly
achieved the three-year goal it set for total contract value by the
end of its second year as a public company.
While we are quite proud of the accomplishments and value
creation at Ceridian, the incremental value we add to their
operations lessens with the maturity of this company and
management team, and accordingly, we have reduced Cannae   s
stake each year since their April 2018 IPO, when we owned 37
million shares. During 2022, Cannae sold 4 million shares of
CDAY for $286 million. From the IPO date through March 2023,
Cannae has sold approximately 32.1 million shares of CDAY,
returning gross proceeds to our shareholders of over $2 billion.
As companies continue to look for ways to engage with
increasingly disconnected employees, we are optimistic on
the prospects of Alight as management continues to build and
expand its broad set of employer solutions.
Cannae holds 52.5 million shares of Alight common stock,
representing approximately 10% of their outstanding shares.
3



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